Ángeles Rodríguez, Platts S&P Global

RIO
EnergiesNet.com 02 05 2024

The upcoming commissioning of one of New Fortress’ LNG import terminals, as well as some expected purchases from Petrobras, could stimulate LNG demand in the next few weeks, according to market sources.

The Gas Sul LNG import terminal, which New Fortress Energy is developing in the southern Brazilian state of Santa Catarina, is nearing commissioning following an operational authorization from the National Petroleum Agency, or ANP, an Atlantic-based trader said.

The terminal’s commissioning date is currently expected to be Feb. 15, according to a Brazil-based source.

New Fortress Energy did not immediately respond to a request for comment on the matter.

Some Brazilian gas users are looking to purchase from the Santa Catarina terminal for March, with the Rota 1 pipeline undergoing maintenance during that time, the Brazil-based source said.

The ANP issued operational authorization to New Fortress Energy’s Brazilian subsidiary on Jan. 30, based on a notice published on the federal official gazette Jan. 31.

The two-year authorization enables the company to import up to 15 million cu m/d of LNG to the terminal, located in the Sao Francisco do Sul municipality.

The Energos Winter, sub-chartered by the US developer from Petrobras in November, has been moored offshore Sao Francisco do Sul since the end of December.

As the first LNG terminal to be developed in southern Brazil, the Santa Catarina facility is expected to meet the region’s growing industrial and power demand. The imported gas will be transported via a pipeline connecting to the Bolivia-Brazil pipeline, primarily owned by Petrobras.

Petrobras’ spot cargoes

In a separate development, the Magdala LNG carrier, having unloaded in Rio de Janeiro’s Guanabara Bay terminal on Jan. 29, was en route to the Bahia terminal as of Feb. 2, data from S&P Global Commodities at Sea shows. The two terminals are operated by Petrobras.

This cargo is one of the spot market purchases made by Petrobras in early January, according to a source familiar with the situation. It is not uncommon for Petrobras to buy a single cargo and unload it in two different locations, as seen with the Magdala, a second Atlantic-based trader said.

Petrobras had scheduled some of the cargoes purchased in January for February delivery, a different source previously said. It remains unclear if additional cargoes are scheduled for this month. The state-run Brazilian company is reportedly looking LNG cargoes for March delivery, another Brazilian-based source said.

Petrobras did not immediately respond to a request for comment.

Market sources previously said that scheduled maintenance in the Rota 1 gas pipeline could drive LNG imports to fill the supply gas, with one Brazil-based source estimating Petrobras might require between 12 million cu m/d and 36 million cu m/d of LNG volumes to compensate for the pipeline’s unavailable supply.

The actual volumes of LNG imports will largely hinge on the availability of piped natural gas deliveries from Bolivia, the third trader said. With Argentina currently in a low demand season, Bolivian supply is expected to be accessible, the trader said.

Platts, part of S&P Global Commodity Insights, assessed the recently launched DES Brazil LNG price at $8.860/MMBtu on Feb. 2, down 4.9 cents/MMBtu on the day.

spglobal.com 02 02 2024